Monday, March 31, 2014

Update – The IBD Top 50 Stocks Strategy

Here’s a late update on the IBD Top 50 stocks investing strategies vs. $SPY

imageThe IBD Monthly models had a bad month!

Since IBD changes the make-up of their stocks in the IBD 50 as conditions change, and these models were “stuck” with the holdings since the 2/28/2014 close, there were some dramatic percentage drops in many holdings.  For example, QIWI was in all of the models and fell over 25%.  That’s going to hurt a resume!  But IBD removed QIWI mid-month and replaced it with something else.

For the month, there was 13 stocks up and 37 stocks down for the IBD 50.

The total return since 2/8/2014 is now underperforming the SP500. 

The portfolio is sold at the closing price on the last trading day of the month, and rebalanced into the make-up of the IBD top 50.

The Top 25 holdings are listed at at Motif Investing.  (A check as of 3/31/2014 shows that the ability to view all holdings is limited to Motif members and IBD subscribers).

None of the above strategies are a recommendation to buy or sell stocks.  These are model portfolios constructed for entertainment only.

This is the IBD portfolio performance since 2/8/2014.  Each portfolio begins with $10,000 and then invests an equal amount in the top 5, 10, 25 and 50 IBD stocks at the closing prices on Friday for the weekly model, and at the closing prices on the last trading day of the month for the monthly model.  Since IBD changes the make up of their top stocks daily, this will only rebalance on Fridays or end of month.  Daily changes in the IBD 50 or stock rankings are not considered.  Changes in IBD’s overall market views are not considered.  Stop loss orders or other market timing strategies are not considered. 

Based on a blog entry from Paladin Money.  See Investors Business Daily for more information on the IBD 50.  See Motif Investing for their IBD Top 25 portfolio, and the ability to construct your own portfolio of stocks.

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